Hire employees in

Mexico, hassle-free

Hire employees in Mexico, hassle-free

With Deel, your business can easily hire employees in Mexico. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Mexico is 2 days with Deel.

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Hire employees in Mexico. No entity needed.

Usually, to hire in Mexico, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Mexico also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Mexico quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

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All the necessary benefits for Mexico
built right in

Deel allows you to provide localized benefits for employees in Mexico within minutes. All in one manageable online dashboard.

National Housing Fund (Infonavit)
Pension Fund
Public Health Insurance
Social Security
Worker Compensation Accident Insurance
Private Healthcare - MetLife (optional)

Our quickstart guide to hiring in Mexico

Navigate the tabs below to learn everything you need to know about hiring an employee in Mexico

Minimum Wage Requirements

The minimum wage in Mexico depends on the location of the employee:

Free Zone of the Northern Frontier (NBFZ) is MXN 5,206.8 per month
The rest of the country is MXN 3,457.4 per month set by the National Minimum Wages Commission (CONASAMI)

Individual Income Tax

The individual income tax ranges from 1% to 35%. Income tax is calculated according to progressive rates.

Gross Annual Income	Tax Rate (%)
Up to MXN 7,735.00	1.92%
Up to MXN 65,651.07	6.40%
Up to MXN 115,375.90	10.88%
Up to MXN 134,119.41	16%
Up to MXN 160,577.65	17.92%
Up to MXN 323,862.00	21.36%
Up to MXN 510,451.00	23.52%
Up to MXN 974,535.03	30%
Up to MXN 1,299,380	32%
Up to MXN 3,898,140.12	34%
Over MXN 3,898,140.13	35%

Mexico has a new special regime that if the employee meets the criteria, could lower the income tax called "Regimen Simplificado de Confianza". However, even though the employee is entitled to this lower tax benefit, they can choose to apply it or continue with the average income tax.

Employer Cost

The employer cost is generally estimated at 26% of the employee salary.

Social Security IMSS - MXN 556.09
- Pensioner funds - 1.05%
- Benefit for disabilities - 0.70%
- Disablement and Life Insurance - 1.75%
- Nursery and Social Benefits - 1%
- Retirement - 2%
- Senior fund - 3.15%
- Worker compensation - 0.54%
- Infonavit - 5%
- Local tax - 3%
Surplus Fee (extra Social Security cost for bonuses) - 1.10%
Vacation Bonus Monthly Accrual - 0.41%
End of Year Bonus Monthly Accrual - 4.11%

Overtime Pay & Maximum Hours

Overtime payment is mandatory and cannot be included in the salary. Hours outside of the maximum working hours are considered overtime, and there is no maximum of overtime hours per week. For additional hours, employees are paid:

200% of the hourly rate, the first eight hours of overtime during a week
300% of the hourly rate, overtime hours above the first eight hours

Standard working hours are eight hours per day and a maximum of 48 hours per week. The standard workweek is from Monday to Friday if the working week is 40 hours. The extended workweek is 48 hours from Monday to Saturday.

Maternity Leave

Pregnant employees are entitled to 84 days of paid leave. Leave must start 40 days before the child's birth and continue without breaks. The employee will receive 100% of their average salary during this period, and Mexican Social Security Institute (IMSS) will be responsible for this pay.

Employees can additionally request rest breaks within the six months after the birth, known as the nursing period. The employee can extend leave and will be unpaid.

Paternity Leave

Employees are entitled to five days of paid paternity leave. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.

The employee can extend leave at the employer's discretion, which will be unpaid.

Parental Leave

In Mexico, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 52 weeks, and the Mexican Social Security Institution may grant additional weeks according to the type of illness. This leave is paid at different rates and by different payers depending upon length:

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Mexico can be complex. There is no at-will termination for employers, and if the termination is without cause, a mutual agreement must be agreed upon. Compliant terminations include:

Voluntarily by the employee
By mutual agreement: end of year bonus, holidays, and severance must be paid
By the expiration of the contract
Unilaterally by the employer based on:
- probation period
- disciplinary dismissal according to the Labor Code (Article 47 LFT)

The employee should not be notified when termination is by mutual agreement until the employer has set up the termination process (calculated severance payment, written the termination letter, and informed HR). A termination must be done within 24 hours, including paying the employee.

The employer will have to notify the employee and request a wet ink signature of the resignation letter provided by the employee the same day. The employer will have 24 hours to pay the employee severance and benefits accrued.

Notice Period

In Mexico, there is no notice period for terminations, as enforced by law.

Severance for Employees

Employees terminated without cause can claim the following severance payments:

90 days of salary compensation, including payment of employment benefits
20 days of salary for each year of services rendered
A seniority premium, equal to 12 days salary per year worked, including paid vacation, Christmas bonus, and additional accrued benefits

An employee dismissed without just cause has the option to be reinstated to his former job instead of receiving the severance payment.

Paid Time Off

Both full-time and part-time employees are entitled to 6 days of paid time off (PTO) a year. PTO entitlement is based on the length of the labor relationship, and it will be granted after six months of work.

Additionally, employees are entitled to receive a holiday bonus of 25% of their monthly base salary paid while taking leave.

Public Holidays

Mexico celebrates seven national and one regional holidays based on the employee's location.

National public holidays include:

New Year's Day
Constitution Day
Benito Juárez's Day
Labor Day
Independence Day
Revolution Day
Christmas Day

Onboarding

Onboarding takes 2 business days after the client signs the SOW.

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

Name
Start date
Length of the employment
Job description
Termination conditions
Christmas Bonus
Beneficiaries, according to article 25 of the Federal Labor Law.

Probation Period

Employees hired using Deel have a probation period of 30 days, which you can extend up to 180 days for managerial positions and specialized technical roles. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.

Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals.

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Hiring in Mexico, hassle-free

With Deel, your business can easily hire employees in Mexico. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

599 USD

Management fee

26%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Mexico?

View our Employee Cost Calculator

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